India Q2 GDP growth slips to 6.3%, dragged down by manufacturing & mining sectors

India’s economic growth slowed down to 6.3 percent in the July-September quarter of this fiscal, dragged down mainly by the poor performance of manufacturing and mining sectors, official data showed on Wednesday. However, India remained the fastest-growing major economy as China registered an economic growth of 3.9 percent in July-September 2022.

The Indian economy grew by 8.4 percent in July-September, 2021-22, as per the data released by the National Statistical Office (NSO). The gross domestic product (GDP) expanded by 13.5 percent in the April-June quarter this fiscal.

The second quarter GDP growth is almost at par with the RBI’s projection of 6.1 percent to 6.3 percent released earlier this month in one of the articles published in its bulletin.

"Real GDP or GDP at Constant (2011-12) Prices in Q2 2022-23 is estimated at Rs 38.17 lakh crore, as against Rs 35.89 lakh crore in Q2 2021-22, showing a growth of 6.3 percent as compared to 8.4 percent in Q2 2021-22," the NSO statement said.

The real GDP in absolute terms stood at Rs 33.10 lakh crore in the July-September quarter of 2020. It had contracted by 6.6 percent in the second quarter of 2020-21 on account of the staggering impact of lockdown restrictions to curb the spread of coronavirus.

As per the data, Gross Value Added (GVA) grew by 5.6 percent to Rs 35.05 lakh crore in July-September this year.

The GVA growth in the farm sector is 4.6 percent in the second quarter compared to 3.2 percent a year ago.

However, the GVA in the manufacturing sector contracted 4.3 percent during the quarter from 5.6 percent growth during the year-ago period.

GVA in mining also declined by 2.8 per cent in the quarter compared to 14.5 percent growth. The GVA growth in the construction sector also decelerated to 6.6 percent in the quarter from 8.1 percent.

The electricity, gas, water supply and other utility services segment grew by 5.6 percent in the quarter compared to 8.5 percent a year ago. GVA growth in the services sector — trade, hotel, transport, communication and services related to broadcasting — was 14.7 percent during the second quarter against 9.6 percent.

Financial, real estate and professional services grew by 7.2 percent in the first quarter over 6.1 percent earlier.

Public administration, defence and other services posted 6.5 percent growth against 19.4 percent in the second quarter of the last fiscal.

The NSO stated that Nominal GDP or GDP at Current Prices in Q2 2022-23 is estimated at Rs 65.31 lakh crore, as against Rs 56.20 lakh crore in Q2 2021-22, showing a growth of 16.2 percent as compared to 19.0 percent in Q2 2021-22.